LTX-Credence plans layoffs, facilities closures
The ATE company expects to incur a $17.3 million charge related to the layoffs.
By Suzanne Deffree, Managing Editor, News -- EDN, September 16, 2008
LTX-Credence Corp has approved a plan to cut jobs and close some "redundant facilities" as the merger of the test and measurement war-horses continues to progress.
The all-stock merger, closed on August 29, gave Credence Systems shareholders a 50.02% stake in the combined company and LTX shareholders a 49.98% stake in the combined company, and created an ATE (automated test equipment) industry giant.
In a SEC (Securities and Exchange Commission) filing made last week, LTX-Credence said it will terminate employees in various locations in connection with its integration plan following the merger.
As are often the case when two industry specialists merge, such actions are not entirely unexpected. David Tacelli, CEO and president of the new test company and former CEO and president of LTX, said on a conference call immediately following the June merger announcement that of the total 42 offices worldwide, the combined LTX-Credence could close 15 duplicate ones to contribute to the merged company's expected $25 million in annual savings.
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Milpitas,Calif-based LTX-Credence did not provide much further detail in its September 12 SEC filing, except to state that it expects to incur a $17.3 million charge related to the layoffs. A portion of that will be recorded as restructuring charges in the quarter ending October 31, while a separate portion will be recorded as an adjustment to the allocation of the purchase price.
LTX-Credence said in the filing that it completed notifying affected employees on September 9, with the exception of employees in certain international locations.
As to the facility closures, LTX-Credence said it is not yet able to estimate total charges.
LTX-Credence did not return calls to Electronic News for further comment.
